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Managing director
 
 
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Managing director is the term used for the chief executive of many limited companies
Limited company

A limited company in the United Kingdom is a corporation whose limited liability is Private company limited by shares , which is the most common form of privately held company....
 in the United Kingdom
United Kingdom

The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom , the UK or Britain,is a sovereign state located off the northwestern coast of continental Europe....
, Commonwealth
Commonwealth of Nations

The Commonwealth of Nations, also known as the Commonwealth or the British Commonwealth, is an intergovernmental organization of fifty-three independent member states....
 and some other English speaking countries. The title reflects his or her role as both a member of the Board of Directors
Board of directors

A board of directors is a body of elected or appointed persons who jointly oversee the activities of a company or organization. The body sometimes has a different name, such as board of trustees, board of governors, board of managers, or executive board....
 but also as the senior manager
Management

Management in business and human organization activity is simply the act of getting people together to accomplish desired goals. Management comprises planning, organizing, staffing, leadership or directing, and Control an organization or effort for the purpose of accomplishing a goal....
.

In larger organisations, including investment banks and other financial institutions, "managing director" does not refer to the chief executive but can rather refer to the head of a major business unit.

The term Chief Executive
Chief executive officer

A chief executive officer or chief executive is typically the highest-ranking Corporate title or Administration in charge of total management of a corporation, company, non-profit organization, or government agency, reporting to the board of directors....
 (or in other countries Chief Executive Officer or just "CEO") is in general usage in the United Kingdom for the senior executive of public limited companies
Public limited company

A public limited company is a type of limited company which is permitted to offer its stock to the public. The designation was introduced in the UK by the Companies Act 1980, and in the Republic of Ireland by the Companies Act 1983....
, charities and Executive Agencies
Executive agency

An executive agency, also known as a next-step agency, is a part of a government department that is treated as managerially and budgetarily separate in order to carry out some part of the executive functions of the United Kingdom government, Scottish Government, Welsh Assembly or Northern Ireland Executive....
.






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Managing director is the term used for the chief executive of many limited companies
Limited company

A limited company in the United Kingdom is a corporation whose limited liability is Private company limited by shares , which is the most common form of privately held company....
 in the United Kingdom
United Kingdom

The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom , the UK or Britain,is a sovereign state located off the northwestern coast of continental Europe....
, Commonwealth
Commonwealth of Nations

The Commonwealth of Nations, also known as the Commonwealth or the British Commonwealth, is an intergovernmental organization of fifty-three independent member states....
 and some other English speaking countries. The title reflects his or her role as both a member of the Board of Directors
Board of directors

A board of directors is a body of elected or appointed persons who jointly oversee the activities of a company or organization. The body sometimes has a different name, such as board of trustees, board of governors, board of managers, or executive board....
 but also as the senior manager
Management

Management in business and human organization activity is simply the act of getting people together to accomplish desired goals. Management comprises planning, organizing, staffing, leadership or directing, and Control an organization or effort for the purpose of accomplishing a goal....
.

In larger organisations, including investment banks and other financial institutions, "managing director" does not refer to the chief executive but can rather refer to the head of a major business unit.

The term Chief Executive
Chief executive officer

A chief executive officer or chief executive is typically the highest-ranking Corporate title or Administration in charge of total management of a corporation, company, non-profit organization, or government agency, reporting to the board of directors....
 (or in other countries Chief Executive Officer or just "CEO") is in general usage in the United Kingdom for the senior executive of public limited companies
Public limited company

A public limited company is a type of limited company which is permitted to offer its stock to the public. The designation was introduced in the UK by the Companies Act 1980, and in the Republic of Ireland by the Companies Act 1983....
, charities and Executive Agencies
Executive agency

An executive agency, also known as a next-step agency, is a part of a government department that is treated as managerially and budgetarily separate in order to carry out some part of the executive functions of the United Kingdom government, Scottish Government, Welsh Assembly or Northern Ireland Executive....
. At subsidiary
Subsidiary

A subsidiary, in business matters, is an entity that is controlled by a bigger and more powerful entity. The controlled entity is called a company , corporation, or limited liability company, and the controlling entity is called its parent ....
 companies usage is more variable, with managing director often preferred.

Roles and Responsibilities

The role of a Managing Director (MD) is to design, develop and implement the strategic plan for his or her company in the most cost effective and time efficient manner.

The Managing director is responsible for both the day-to-day running of the company and developing business plans for the long term future of the organisation. The Managing director is accountable to the board and the shareholders of the company. It is the board that grants the Managing Director the authority to "run" the company.

In addition to the Managing Director, most companies have a Board of Directors
Board of directors

A board of directors is a body of elected or appointed persons who jointly oversee the activities of a company or organization. The body sometimes has a different name, such as board of trustees, board of governors, board of managers, or executive board....
. This board usually consists of such posts as: Finance Director, Sales Director, IT Director, Marketing Director, Technical Director
Technical director

The Technical Director or Technical Producer is usually the most senior technical person within a Software, Theatre, or Film/Television Studio or agency....
 and Chairman
Chair (official)

The chairman is the highest office of an organized group such as a Board of directors, committee, or deliberative assembly. The person holding the office is typically elected or appointed by the members of the group....
. In addition to these posts there may be a number of other directors including non-executive directors.

The Managing Director is a leadership role for an organisation and he fulfills a motivational role for his workers in addition to his more office-based work. MDs motivate and mentor members of the management team and chair meetings. The MD leads the company and develops the corporate culture for the organisation.

As the title suggests, the Managing director needs to manage everything. This includes the staff, the customers, the budget, the company's assets and all other company resources to make the best use of them and increase the company's profitability.

The MD or Senior MD reports to the Board of Directors on a weekly, monthly, quarterly, semi-annual, annual or every decade basis to keep them informed of how the company is doing. The board will offer suggestions and ideas about how to improve the company to the Managing Director. It is the MD's responsibility to implement, improve upon or ignore these ideas.

The MD is legally responsible for the company's affairs, so he must comply with the appropriate rules and regulations set out in corporate law
Corporate law

Corporate law is the law of the most dominant kind of business enterprise in the modern world. Corporate law is the study of how shareholders, Board of directors, employees, creditors, and other stakeholders such as consumers, the community and the environment interact with one another under the internal rules of the firm....
. These include following the proper audit procedure and not allowing the company to break any trade embargoes or deal in any illegal goods.

Role in Great Britain

In the United States
United States

The United States of America is a Federal government constitutional republic comprising U.S. state and a federal district. The country is situated mostly in central North America, where its Contiguous United States and Washington, D.C., the Capital districts and territories, lie between the Pacific Ocean and Atlantic Oceans, Borders of the U...
, the term refers to a person in charge of a specific aspect of a business. This can be an officer or Director of the corporation in which the individual is employed.

In some businesses, a General Manager (GM)
General manager

General Manager or GM for short is a descriptive term for certain corporate officers in a business operation. It is also a formal title held by some business executives, most commonly in the hospitality industry....
 can share many of the same roles as an MD, but is not a Director, and a GM is not a member of the Board of Directors
Board of directors

A board of directors is a body of elected or appointed persons who jointly oversee the activities of a company or organization. The body sometimes has a different name, such as board of trustees, board of governors, board of managers, or executive board....
.

See also

  • Agency cost
    Agency cost

    An agency cost is an Economics concept that relates to the cost incurred by an entity associated with problems such as divergent management-shareholder objectives and information asymmetry....
  • Chair (official)
    Chair (official)

    The chairman is the highest office of an organized group such as a Board of directors, committee, or deliberative assembly. The person holding the office is typically elected or appointed by the members of the group....
  • Corporate governance
    Corporate governance

    Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation is directed, administered or controlled....
  • Corporate title
    Corporate title

    Publicly and privately held for-profit corporations confer corporate titles or business titles on company officials as a means of identifying their function in the organization....
  • Executive director
    Executive director

    An executive director is the senior General manager or executive officer of an organization, company , or corporation. The position is comparable to a chief executive officer or managing director....
  • Non-executive director
    Non-executive director

    A non-executive director or outside director is a member of the board of directors of a company who does not form part of the executive management team....
  • Board of directors
    Board of directors

    A board of directors is a body of elected or appointed persons who jointly oversee the activities of a company or organization. The body sometimes has a different name, such as board of trustees, board of governors, board of managers, or executive board....
  • Chief executive officer
    Chief executive officer

    A chief executive officer or chief executive is typically the highest-ranking Corporate title or Administration in charge of total management of a corporation, company, non-profit organization, or government agency, reporting to the board of directors....
  • VP/GM